Real estate continues to be one of the investment areas with the most potential for long-term healthy returns. Entering this market can be daunting when you’re not sure what makes for a worthwhile investment or the responsibilities that follow.
In this article, you can learn helpful tips that can make it easier to purchase the right property and get the most out of it.
Features to Look for in a Property
Keep a few considerations in mind to ensure you choose a property that delivers the kind of return you’re hoping for:
- The location. If you’re looking to purchase a property in El Paso, for example, make sure it’s in an in-demand location. That makes it easier to find tenants and start generating income from the investment sooner. If you decide to sell later, the property is more likely to fetch a higher price.
- The condition. While property in a deteriorated state may have a low initial price, you must cover the costs of restoring it to good condition before leasing it out. You have to decide if you can ultimately come out ahead financially after making necessary repairs and how soon you intend to start generating a return on the investment.
- The size. Larger properties generally tend to command higher rental fees despite costing more initially. They also create the opportunity for house-sharing agreements or to have more tenants in the property, which can significantly increase your return.
What’s Involved in Managing the Investment?
Managing the property involves looking for dependable tenants and making sure their rent payments are up-to-date. You must also attend to their queries when they raise issues about the state of the building. Likewise, you're responsible for carrying out regular maintenance and keeping amenities in working order.
Managing the property also involves maintaining its exterior, including the landscaping and paint. Trees are a major consideration here, and it's wise to remove any that may fall and pose a risk to the property or its occupants. However, that task is best left to well-equipped professionals. Before calling any contractors, look for a “tree service near me” and read online reviews to determine their reliability.
Obtain at least three estimates, so you can compare them and ensure you’re not being overcharged. Expect estimates between $50 and $1,500, but you may be quoted more depending on the size of the tree and how close it is to your home. To get a clear understanding of the value you’re getting, ask whether stump grinding and disposal are included in the quote.
Getting Help With Maintaining the Property
Other options are available if you feel managing the property yourself is too taxing. The best option is to partner with a property management firm that takes over many of those duties for you. That includes everything from dealing with tenants to handling maintenance and repairs.
Property Investment Can Be Highly Rewarding and Stress-free
Purchasing your first investment property can be your gateway to a fulfilling and financially independent way of life. If you’re hesitant to take on the associated responsibilities and are interested in having a third party handle everything from marketing your rental and collecting rents to handling maintenance and tenant issues, reach out to Northern Pass Property Management.